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Quantopian Open - Negative Max Drawdowns

I was browsing through some of the top algorithms on the leaderboards and I noticed that some algorithms are achieving a negative maximum drawdown. How is this possible? If an algorithm doesn't lose money wouldn't it have a maximum drawdown of 0?


3 responses

We show the max drawdown as negative, so -2% means it went 2% underwater at most. Hope that helps!


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@Stefan: Max drawdown describes the percent difference from the highest value to the lowest value that happened after that.

This page describes Max Drawdown.

Thanks guys - I was getting confused because in the algorithm backtester the max drawdown is expressed as a positive number but in the contest it is expressed negatively.

Thanks again!